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Why Levi Strauss (LEVI) Outpaced the Stock Market Today

Levi Strauss (LEVI) closed the most recent trading day at $23.70, moving +0.51% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.27%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.88%.

The the stock of jeans maker has risen by 3.97% in the past month, leading the Retail-Wholesale sector's gain of 0.48% and the S&P 500's gain of 2.85%.

The investment community will be closely monitoring the performance of Levi Strauss in its forthcoming earnings report. The company's upcoming EPS is projected at $0.11, signifying a 175% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.45 billion, reflecting an 8.4% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.27 per share and a revenue of $6.36 billion, demonstrating changes of +15.45% and +2.88%, respectively, from the preceding year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Levi Strauss. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Levi Strauss presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Levi Strauss has a Forward P/E ratio of 18.62 right now. Its industry sports an average Forward P/E of 16.15, so one might conclude that Levi Strauss is trading at a premium comparatively.

Also, we should mention that LEVI has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 2.3.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Levi Strauss & Co. (LEVI) : Free Stock Analysis Report

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Zacks Investment Research